IQE secures outsourcing contract
European company IQE announced it has secured a major outsourcing contract to supply a leading North American RF Component Manufacturer with epitaxial materials for its RF based components used in mobile handsets. The agreement, which is effective from 1st November 2004 and is for a minimum term of two years 's was awarded to IQE's North American subsidiary.
The agreement provides for IQE's Bethlehem site to supply more than 90% of the customer's anticipated demand for their advanced RF wafer products and is potentially worth up to US$25 million in revenue to IQE over the initial two year period. As a result of the agreement, internal wafer manufacture at the customer's site will cease.
IQE's President & CEO, Drew Nelson said "This agreement with such a prominent global supplier of RF components for the cellular phone market demonstrates a clear movement towards the outsourcing model within the compound semiconductor industry."
